Dealers ask brands to clarify their role in vehicle distribution

The employers of the dealerships today asked manufacturers to clarify the role they will play in the future of vehicle distribution in our country. The petition has been launched during the 27th Annual Faconauto Congress, which takes place in Ifema today and tomorrow, and comes when some brands begin to reserve the exclusivity of online sales or study formulas to market their products directly.

Faconauto has indicated that, in a changing environment such as the one that the automotive industry is going through, brands must clarify and establish a consensual strategy with respect to distribution contracts, as well as regarding the dimension that concessionaire networks should have in the future.

“Brands must have an ethical behavior with their concession partners to avoid ambiguities and to know exactly what their approach will be in the coming years. Only in this way can we work and adapt to continue offering a unique added value to the customer’s shopping experience. The manufacturers that bet on their networks will take the cat to the water “, said the president of Faconauto, Gerardo PĂ©rez.

The employers have warned that the biggest impediment that concessionaires can have to invest in human and material resources is, precisely, the uncertainty that looms over the sector. Despite this, many brands are “encouraging” concessions to invest to make bigger or to redesign their facilities.

In this context, Faconauto recalled that the vehicle distribution and repair sector is prepared for these new times and to remain fundamental, due to its knowledge of the customer, the big data and digitalization strategy in which it is embarked and for the improvement of the shopping experience they are undertaking.

On the other hand, the organization that brings together the official concessionaires has asked to rationalize the debate about diesel and its influence on the pollution of large cities. In this regard, has indicated that Spain needs a comprehensive and coordinated plan to improve the environment, in relation to the car, should include measures for the rejuvenation of the park, a strong support for the extension of alternative energy vehicles and infrastructure , as well as a profound change in the taxation of the automobile, which should be based on its use and not on possession.

Employment creation

The Congress, which has brought together 1,200 professionals from the sector, has served to present the data for the end of last year, among which the number of jobs has stood out. Automotive dealers in our country directly employed 162,434 people in 2017, generating 8,506 new jobs.

The perspective of Faconauto is that the sector continues to create employment in the coming years, and manages as “adequate” to reach the figure of 200,000 in the medium term so that concessionaires can add value to new profiles of buyers.

On the other hand, Faconauto has described the year as very positive, thanks to which the sector’s turnover grew by 4.7% to 32,145 million euros, of which 69.3% came from car sales new, 17.4% of the sales of used cars, while the remaining 13.3% was contributed by the activity of the workshops.

With these figures, the average profitability of the sector rose last year to 1.8% on turnover. Going into the detail, the dealers that obtained better results in their new vehicle departments were those that sold more than 5,000 units a year, with a 1.8% average return, while those that sold less 500 cars saw their profitability fall up to 0.7%.

Finally, the number of official dealers continued to decrease last year, to be located in 2.087, compared to 2.198 in 2016. For its part, the secondary network (agents and official services) was reduced to 1490 points, a sharp decline if the we compare with the 1,726 of the previous year.

Faconauto is the employer association that integrates the associations of official dealers of the automobile brands, of industrial vehicles and of agricultural machinery present in the Spanish market. It represents the interests of 2,087 car dealerships and on which approximately 1,490 second level distribution companies (agencies and official services) depend, which totals more than 3,577 automotive SMEs. These companies generate 162,434 direct jobs and a turnover of 32,145 million.